However, without taking inflation into account, UK spend totalled 拢3.8bn, a year-on-year increase of 0.1% across all media.
While in real terms TV advertising experienced a modest 0.8% hike and outdoor increased by 1.6%, internet advertising continued to demonstrate its massive capacity for growth. Expenditure increased by 46.5% to 拢266m.
This follows ZenithOptimedia last week singling out the internet as a driver of increased adspend. It said the internet will take 4.6% of advertising spend this year, rising to 6.4% in 2008. From 2005 to 2008, the internet is expected to create $15.8bn (拢8.9bn) worth of new adspend.
Conversely, press advertising suffered the most severe decline. Classified advertising plummeted 9.6% to 拢768m, national newspaper spend decreased 8.4% to 拢420m and regional newspaper spend fell 9.2% to 拢718m.
Consumer magazines fared better, but were still hit hard by tightening budgets, with overall expenditure falling 2% to 拢194m.
Direct mail also suffered a decline, falling 8.2% to 拢535m.
The AA research was compiled in conjunction with WARC.
Despite the bad news, there were better tidings last week when the AA said that advertising growth is expected to bounce back next year in the UK and hit a peak in 2009. The figures predicted that, over the next 12 years, adspend could grow by as much as 43% to 拢23bn, in the absence of major threats. Even the most conservative forecast by the AA previously had growth between 2005 and 2017 at 37%.
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